article in "proactive investors"

Macquarie Harbour Mining advances plans for US aluminium waste product processing

Thursday, November 25, 2010

With an aim to expand in the United States, Macquarie Harbour Mining (ASX: MHM) has made encouraging progress in US salt slag processing planning after working on-site in the US with Smelter Service Corporation, Alcoa (NYSE: AA) and key regulatory officials.

Through wholly-owned operating subsidiary Alreco Pty Ltd, Macquarie Harbour Mining owns the exclusive global rights to a proprietary technology for the processing of aluminium salt slag, a waste product from the aluminium industry.

Aluminium salt slag is a waste stream that results from the recycling of aluminium, a by-product from recyclers that has traditionally been placed in landfill.

While landfilling salt slag continues in the US, MHM�s technology is expected to recover substantial value from landfill and feedstock sources.

MHM believes an economic incentive will result in the cessation of salt slag landfilling in the US, regardless of the regulatory position.

Project planning was facilitated for the feasibility study with Smelter Service Corp and more generally to assess regional and national opportunities in the US.

In addition, Tennessee State and local county officials have expressed strong support for the salt slag business expansion.

A number of large single purpose (mono-fill) landfills have been identified to be investigated for reprocessing. With an aim to expand in the United States. Material from regional producers that may be viable as feedstock for a centralised processing facility has also been identified.

Executive Director Ben Mead is to relocate to Tennessee in January to drive expansion of salt slag business.

Pilot testing of the Spent Pot Lining technology likely in Tennessee due to the proactive and supportive approach of the State and local governments.

Meetings with hedge funds, investment houses and brokers in New York, and a further roadshow is planned in early 2011.

Due to regulatory changes by the Australia EPA, this material can no longer be disposed in landfill and this has presented a major problem for the industry.

Without a viable solution the secondary aluminium industry cannot continue to operate using the existing highly-efficient yet waste-generating processes.

In Australia council approval for salt ponds is still outstanding. Meetings are to be held on week ending 26 November to try to determine the timeline for approval.

Large sections of the process were commissioned and are exceeding expectations. Full commissioning will happen once salt ponds approval and construction is completed. Salt ponds construction is expected to take 3-4 weeks after the approval is granted.